About the Company
Alphabet Inc is a multinational American conglomerate founded by the restructuring of Google on October 2, 2015. In other words, it is the umbrella firm of Google. It has its headquarter in Mountain View, California. It became Google’s and its subsidiaries Parent company. It was founded by Sergey Brin and Larry Page who resigned from the firm in December 2019. The companies current Chairman is John L. Hennessy, Sundar Pichai as its CEO, and Ruth Porat, the firm’s CFO. Alphabet Inc. was established to keep Google’s core businesses accountable & cleaner and at the same time allowing autonomy to companies other than internet services. Because of YouTube’s speedy Growth and Google’s success, Alphabet Inc is the global leader when it comes to digital ad revenue. In 2020, the company was one of the top 10 “Fortune 500” with a profit of USD 40 Billion and revenue of USD 183 Billion.
The Motive Behind Naming the Firm- Alphabet
After a lot of debate, the name Alphabet was decided because:
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- Alphabet is one of the innovations by humans that is very important and it implies a group of letters that creates any language, the most important innovation of mankind.
- Secondly, the meaning of Alpha is something that has a return higher than the benchmark, and the bet is putting something at stake.
So, the name itself implies the working of the firm.
Alphabet Inc Subsidiaries
There are many more subsidiaries of Alphabet Inc apart from Google.
Alphabet Inc. Mergers and Acquisition
As of 2016, Alphabet Inc. had acquired more than 200 companies, Motorola Mobility being the largest acquisition of worth USD 12.5 billion. Many of the google products originated from its acquisitions. Unset became Google Group, Dodge Ball became Google Latitude, JotSpot became Google Site, Grand Central became Google Voice, YouTube Next Lab and Audience Development Group came from Next New Networks. The other major mergers and acquisitions include the following.
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Android OS
Google bought Android on August 17, 2005, which is one of the most popular operating systems. It is one of the best acquisitions made by Google and was worth USD 50 million.
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YouTube
This video streaming platform was founded in February 2005 by Jawed Karim, Chad Hurley, and Steve Chen but Google acquired it on 9 October 2016 for USD 1.65 billion.
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DoubleClick
On 13 April 2017, Doubleclick, an advertising firm that provided e-advertisement services, was acquired by Google for USD 3.1 billion and started focusing just on online advertisements.
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AdMob
Google acquired AdMob, which is a mobile advertising firm on 9 November 2009 for USD 750 million.
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ITA Software
This Travel Technology firm was acquired by Google on 12 April 2011 USD 700 million.
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Motorola
Motorola whose original name is Motorola Mobility LLC is a manufacturer of mobile devices. It is one of the biggest acquisitions ever made by Google and was worth USD 12.5 billion. Google owned the company from 2012 to 2014 and then sold it to Lenovo for USD 2.9 billion.
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Waze
Waze, an Israel-based software firm for GPS navigation was bought by Google on 11 July 2013 for USD 1.15 billion.
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Nest Labs
After the acquisition, Nestlab became Google Nest which is a firm that deals with home automation including smart speakers, security systems, routers, smoke detectors, thermostats, streaming devices, and smart displays. This purchase was made on 13 January 2014 for USD 3.2 billion.
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DeepMind Technologies
This artificial intelligence firm was bought by Google for USD 500 million on 23 September 2010.
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The R&D division of HTC
On 21 September 2017, this division of HTC was sold to Alphabet Inc for USD 1.1 billion. The R&D Division has a key contribution to the development of Google Pixel Phones.
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Looker
Looker which was analytics and big data start-up was acquired to boost the service of Google Cloud on 6 June 2019 for USD 2.6 billion
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Fitbit
In 2019 Google announced that it would buy Fitbit which is a fitness wearable firm for USD 2.1 billion was then officially bought in January 2021.
All the above acquisitions are made by Google, but Alphabet Inc is the parent company for the same. In 2021, Dysonic and Provino were also acquired by the firm.
Finances
Consolidated Income Statement from 2018-2020
Key Financials (2020)
Profit Ratios
Earnings Per Share(2019-2020)
Total Return
The 2020 annual revenue for Alphabet Inc. was USD 183 billion and USD 40,269 million was the net income. On 16th January 2020, it even became the 4th American firm to have a market value of USD 1 trillion
Moreover, Alphabet Inc is registered in NASDAQ as a Class C Capital stock under the name “GOOG”. The key data for the GOOG stock for March 2021 to Aug 2021 is as follows:
